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Nasri's City are in the box seat to shatter Liverpool's hopes of a drought-breaking league title, after the Reds lost 2-0 to third-in-line Chelsea on Sunday.
However, the Frenchman reflected on Liverpool's important 3-2 win over Manchester City at Anfield earlier in April, claiming Brendan Rodgers' men lacked defensive grit.
"I saw the reaction when Liverpool were winning 2-0 and they were amazing," Nasri said.
"But in the second half we came back and scored twice and they were shaking at the back.
"They were really scared. We had that chance to score the third goal. Then there was a mistake and they won.
"But I could see they were not as confident as it looks.
"I was sure at some point they would slip and that's what happened."
"No, we can't afford to drop any more (points)," Nasri said.
"Something could happen for Liverpool at Palace, but I don't see Chelsea having another a bad result.
"I don't rule Chelsea out though Jose Mourinho has been doing that.
"All I want to think about is us winning our games and being champions. I don't want to think about Mourinho or Brendan Rodgers."
